Image by: Diana Parkhouse
By Tony Melino
The reasons why people risk their money on the stock market are the same reasons people go to casinos and gamble. Except the stock market is easier to predict than the casino.
So now you’re in a position where you would like to sell your stock. Maybe you don’t know why you want to sell your stock but all you know is you want to sell it.
Here are a few things to consider of why other people sell their stock and then you’ll have a clearer understanding of why you want to sell your stock. It’s better to know what you want than to just shy away because you’re scared of losing.
Financial
The first reason why people sell their stocks is that their stock is up in the market and they know they can double their money! What’s better than taking twice as much as you put in! That means you can take your initial investment back out and play with the extra investment.
Financial situations may change and if someone is up in the stock market, you best believe it’s a wise decision to allow yourself some leeway when it comes to finances. Stay ahead, don’t delve into debt.
The Grass Is Greener Elsewhere
Better opportunities are always going to be on the horizon. Maybe you couldn’t afford the investment up front for a stock you really wanted but now that you are up in the market, you have the expenses to sell your current stock and put it towards your dream stock.
But remember; just because the grass may look greener, doesn’t mean that someone forgot to water it that day and it may turn brown. Make sure to talk with a financial advisor when it comes to trading or selling your stocks.
Red Alert – Sell Now
Another reason why you would want to sell your stocks is if you watch your stock fall numerous days in a row. The longer you wait out the fall, the more money you could lose. So a lot of people pay close attention to the past trends when it comes to falls.
If the stock takes a long time to recover after a lethal blow, maybe it’s time to count your losses and move onto a more stable stock.
Tax Reasons
The last reason why people sell their stock is for tax reasons. I know that last year in 2012, the taxes were lower than they were if you were to sell your stock in 2013. Due to the medicare taxes and the other taxes that were implemented, it’s more expensive the sell your stock this year.
You can learn more about the taxes here.